# In the matter of Twentyone Sugars Limited vs. Maharashtra State Electricity Distribution Co Ltd.

> NCLAT judgment dated 2024-11-13. Citation: TCN-2024-NCLAT-00097. The case involves an appeal against an order dated 10.01.2023, arising out of IA No.32/2021…

- **Court:** NCLAT
- **Order date:** 13 Nov 2024
- **Citation:** TCN-2024-NCLAT-00097
- **Category:** IBC
- **Source page:** https://caseease.in/cases/ibc/nclat-new-delhi/twentyone-sugars-limited-vs-maharashtra-state-electricity-distribution-co-ltd-1c52c19e

## Summary

### Background

The case involves an appeal against an order dated 10.01.2023, arising out of IA No.32/2021 in CP(IB) 1767/MB/2017, where the NCLT dismissed an application for refund of payment made under protest towards pre-CIRP electricity dues by the Successful Resolution Applicant (SRA) to the Respondent. The Corporate Debtor, Maharashtra Shetkari Sugar Ltd, was admitted to CIRP on 30.08.2018. The Resolution Plan filed by the Appellant was approved by the COC with a majority of 95.73% of the votes and later approved by the NCLT on 07.11.2019. The SRA took over the Corporate Debtor on 09.11.2019 and found the electricity connection disconnected. The Respondent refused to restore electricity without clearing pre-CIRP dues, leading the Appellant to make the payment under protest. The

…

## Facts

M/s Maharashtra Shetkari Sugar Ltd, the Corporate Debtor, was admitted into CIRP on 30.08.2018, leading to a moratorium. The Corporate Debtor operated a sugar crushing unit. The COC approved the resolution plan submitted by Twentyone Sugars Limited, the Appellant, between 19th August, 2019 and 31st August, 2019, with a 95.73% majority. The NCLT approved the Resolution Plan on 07.11.2019. The liquidation value was fixed at Rs.68 Crores, while admitted claims totaled Rs.491 crores. The Respondent, Maharashtra State Electricity Distribution co Ltd, failed to file any claim. The Appellant agreed to settle disclosed claims at Rs.109.4 crores and pay Rs.2 crores towards farmers' debts. 65% of the settlement amount was to be sourced through loans. On 09.11.2019, the SRA took

…

## Issues and analysis

### Issue 1: Whether the Respondent, Maharashtra State Electricity Distribution co Ltd, can insist on the …

**Ratio:** The legal principle is that once a resolution plan is approved under Section 31 of the

…

**Reasoning:** The court reasoned that allowing the Respondent to insist on pre-CIRP dues would

…

**Interpretation:** This issue involves the interpretation of Section 31 of the IBC and the

…

**Application:** In this case, the Respondent's demand for pre-CIRP dues contradicts the

…

## Parties

- **Judges:** Yogesh K…; Ajai Das Me…
- **Appellants:** TWENTYONE SUGARS…
- **Respondents:** Maharashtra…; Maharashtra State…

## Timeline

- **2018-08-30 — CIRP Admi…**: Maharashtra Shetkari…
- **2019-08-19 — COC Appr…**: COC approved the resolution plan…

## Legal provisions

- [Insolvency and Bankruptcy Code, 2016, Section 60(5) — Adjudicating Authority for corporate persons](https://caseease.in/legal-provisions/insolvency-and-bankruptcy-code-2016/section-60)

---

This is a preview. The full structured summary, issues, precedents and source judgment are available on CaseEase - Legal Intelligence Simplified: https://caseease.in/cases/ibc/nclat-new-delhi/twentyone-sugars-limited-vs-maharashtra-state-electricity-distribution-co-ltd-1c52c19e